Craft a Compensation Philosophy
Lay the groundwork for compensation that is competitive, cost effective, and brand aligned.
Onsite Workshop
Failure to have a compensation philosophy results in:
- Compensation that is too low, resulting in an inability to recruit people with necessary skills and high turnover.
- Compensation that is inequitable, resulting in poor engagement and vulnerability to discrimination claims.
- Compensation that is too high, resulting in turnover that is too low, which can lead to stale ideas and retention of employees with poor organizational fit.
A formalized compensation strategy results in:
- Improved ability to attract talent and set candidate expectations.
- Improved ability to engage and retain current employees.
- Equitable compensation across the organization.
Module 1: Make the case for crafting a compensation philosophy
The Purpose
Understand business factors and HR trends that are driving the need for compensation planning.
Key Benefits Achieved
Gain buy-in and context for participation in the workshop.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Identify and discuss your compensation challenges |
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Module 2: Explore internal and external factors influencing compensation
The Purpose
Discuss internal and external factors to shape your approach to compensation.
Key Benefits Achieved
Establish a compensation philosophy based on organizational and industry information.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Discuss internal and external factors influencing your compensation philosophy |
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| 2.2 | Determine your general market positioning |
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| 2.3 | Identify your competitors for talent |
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Module 3: Draft a compensation philosophy
The Purpose
Develop a specific compensation philosophy to be applied to all compensation practices in your organization.
Key Benefits Achieved
Effectively direct compensation practices to ensure equity and competitive positioning.
| Activities: | Outputs: | |
|---|---|---|
| 3.1 | Uncover fundamental compensation principles |
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| 3.2 | Develop a compensation philosophy model to clearly illustrate areas of focus |
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| 3.3 | Use your compensation principles to select market positioning strategies and targets for salaries and TCC |
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| 3.4 | Draft your compensation philosophy |
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Book Your Workshop
Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.
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